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Be careful what you wish for? Fed may need to let inflation run hot to meet goals: Evans The Fed has made it clear that an unemployment rate of about 5.5 percent and an inflation rate of about 2 percent are indicative of a healthy economy, he said. Bringing the economy back to health slowly poses risks because of the chance of intervening policy shocks, Evans said.
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Fed may need to let inflation run hot to meet goals: Evans
The Fed has made it clear that an unemployment rate of about 5.5 percent and an inflation rate of about 2 percent are indicative of a healthy economy, he said. Bringing the economy back to health slowly poses risks because of the chance of intervening policy shocks, Evans said.
"The surest and quickest way to get to the objective is to be willing to overshoot in a manageable fashion," Evans said. "With regard to our inflation objective, we need to repeatedly state clearly that our 2 percent objective is not a ceiling for inflation."
http://news.yahoo.com/fed-officials-downplay-worries-over-u-growth-155420595--business.html